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Crypto Fund Inflows of $293M Bring Yearly Total Above $1B: CoinShares
It's not just bitcoin as ether-related funds saw their largest weekly inflow in more than a year.
Nov 13, 2023, 5:30 p.m.
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A third consecutive week of sizable net inflows into cryptocurrency funds has pushed the yearly total above $1 billion, according to digital asset manager Coinshares.
Digital asset investment products saw net inflows of $293 million last week, bringing year-to-date inflows to a total of $1.14 billion. That makes 2023 as having the third highest yearly inflows on record, said Coinshares. Much of that is thanks to the last three weeks, which have witnessed nearly $900 million in net inflows.
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Bitcoin funds accounted for $240 million of the $293 million of net inflows last week.
This comes as the crypto market has been rallying on the back of optimism about possible imminent U.S. regulatory approval of a spot bitcoin ETF. Bitcoin [BTC] has gained about 37% since the start of October, bringing its year-to-date advance to roughly 122%
Bitcoin exchange-traded product (ETP) volumes made up 19.5% of total bitcoin trading volumes on exchanges, noted Coinshares. “This has rarely happened and suggests ETP investors are participating much more in this rally compared to 2020/21," the firm added.
Ether [ETH] funds saw $49 million of net inflows last week – their largest such total since August 2022 – with the catalyst for this likely being last week's spot ether ETF application from BlackRock.
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BlackRock exec says 1% crypto allocation in Asia could unlock $2 trillion in new flows
During a panel discussion at Consensus in Hong Kong, Peach pointed to massive capital pools in traditional finance as ETF adoption spreads across Asia.
What to know:
- Even a 1% crypto allocation in standard portfolios across Asia could translate into nearly $2 trillion of inflows, highlighting how modest shifts in asset allocation could transform the digital asset market, according to the head of APAC iShares at BlackRock, Nicholas Peach.
- BlackRock's iShares unit, whose U.S.-listed spot Bitcoin ETF IBIT has rapidly grown to about $53 billion in assets, is seeing strong demand from Asian investors as ETF adoption accelerates across the region.
- Regulators in markets such as Hong Kong, Japan and South Korea are moving toward broader crypto ETF offerings, but industry leaders say investor education and portfolio strategy will be critical to channeling traditional finance capital into digital assets.
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